PEI Cannabis - Annual Report 2020

TACTICAL SUMMARY PEI Cannabis recognizes the continued presence of a mature, sophisticated illicit cannabis market. Further, this unregulated market still controls much of the PEI market share, and due to the absence of any quality assurance measures or accountability requirements to customers and staff, it also has much lower costs to get product to market. Further, the corporation acknowledges the pre-legalization customer preferences, and how they continue to shape the licit industry’s current and prospective product offerings (i.e. derivative products, genetic, etc.). To successfully compete with existing market sources, PEI Cannabis executed plans focusing on excellence in Category Management, Supply Chain Management, and Risk Management. PEI Cannabis is pleased to have exceeded its sales and profitability targets for fiscal 2020, and more importantly the corporation has achieved success related to incremental illicit market displacement. However, it has also identified some key challenges and opportunities in terms of achieving sustainable outcomes in the medium-to-long term.

PEI Cannabis Î.-P.-É. • 2019 Annual Report 15